The initial public offering (IPO) of Exxaro Tiles, a leading manufacturer of vitrified tiles, is to open for subscription by the first week of August and is expected to raise ₹150 crore- ₹160 crore.
This will be the first IPO after a decade in the ceramic industry space. India has conquered the second position in global exports surpassing Spain. Ceramics industry has clocked the highest returns for shareholders in the last two years.
The IPO of up to 1.34 crore equity shares will comprise a fresh issue of up to 1.12 crore equity shares and an offer for sale of up to 22.38 lakh equity shares by Dixitkumar Patel, according to the draft red herring prospectus (DRHP).
Exxaro Tiles, which filed preliminary IPO papers with Sebi in March, has one of the largest companies in the glazed vitrified tiles (GVT) and polished glazed vitrified tiles (PGVT) space in India. it has the largest manufacturing plant for GVT under single roof with latest technology and machinery enabling the company to compete globally.
As per the DRHP, the Gujarat-based company may, in consultation with the merchant banker, consider a pre-IPO placement of up to 22 lakh equity shares for cash consideration. The number of equity shares pursuant to the pre-IPO placement will be reduced from the fresh issuance.
Proceeds from the fresh issue would be utilized towards repaying/ prepaying of borrowings, fund its working capital requirements, and for general corporate purposes.
Promoted by Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel, Exxaro Tiles is primarily engaged in the business of manufacturing and marketing of vitrified tiles used majorly for flooring solutions catering to residential and commercial segments. It currently has an over 2,000 dealers’ network across 27 states.
Indian ceramics industry has clocked highest returns for investors for last two years. It has been growing exponentially during last couple of years as the industry changes gears, including continuous shift to organization, shift in product focus (GVT and PGVT), growing global penetration of large slabs, implementation of best-in-class technology and innovation to manufacture products suitable for global markets.
Many medium and large companies have adopted the change, supported by additional factors such as imposition of anti-dumping duties on Chinese tiles by the western markets, and anti-China sentiments prevalent across the globe.
Pantomath Capital Advisors has been appointed as the lead manager to the issue.
Never miss a story! Stay connected and informed with Mint.
our App Now!!